Study of international employee benefits trends l.jpg
This presentation is the property of its rightful owner.
Sponsored Links
1 / 34

Study of International Employee Benefits Trends PowerPoint PPT Presentation


Study of International Employee Benefits Trends. DIVERSE ECONOMIES AND DEMOGRAPHICS. GDP. POPULATION. MEDIAN AGE (YEARS). LIFE EXPECTANCY AT BIRTH (YEARS). INDIA. 1.1 billion. 23.8. $ 4.2 trillion. 63.5. MEXICO. 25.6. $ 1.2 trillion. 107.0 million. 75.4. 80.6. $681 billion.

Related searches for Study of International Employee Benefits Trends

Download Presentation

Study of International Employee Benefits Trends

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Study of international employee benefits trends l.jpg

Study of International Employee Benefits Trends


The employee benefits advantage leveraging a global perspective l.jpg

DIVERSE ECONOMIES AND DEMOGRAPHICS

GDP

POPULATION

MEDIAN AGE (YEARS)

LIFE EXPECTANCY AT BIRTH (YEARS)

INDIA

1.1 billion

23.8

$ 4.2 trillion

63.5

MEXICO

25.6

$ 1.2 trillion

107.0 million

75.4

80.6

$681 billion

36.7

20.2 million

AUSTRALIA

UNITED KINGDOM

78.9

38.9

59.7 million

$ 2.1 trillion

UNITED STATES

299.0 million

$ 13.2 trillion

36.0

77.7

GDP = Purchasing power parity in international dollars, 2006.

All other figures as of 2005.

Source: World Bank (GDP and life expectancy), World Health Organization (population), United Nations (median age).

The Employee Benefits Advantage: Leveraging a Global Perspective

Benefits practices vary significantly from country to country based on government social programs, size and competitiveness of labor markets, and national culture and tradition.


The employee benefits advantage leveraging a global perspective3 l.jpg

  • Aging population

  • Longevity

  • New family dynamics

  • Pressure on social security and health care systems

  • Retirement concerns

  • Work life balance

  • Work force migration

  • Spending power

  • Healthier lifestyles

  • Improved health care

  • Decline in birthrates

  • Business expansion

  • Employee opportunities

  • New competition

  • Rapid growth

The Employee Benefits Advantage: Leveraging a Global Perspective

Using history as a guide, we know that economic development in individual countries tends to follow a familiar pattern.

MORE DEVELOPED

LESS DEVELOPED

Overview


The employee benefits advantage leveraging a global perspective4 l.jpg

The Employee Benefits Advantage: Leveraging a Global Perspective

In both developing and developed markets, vast populations are underinsured and unprepared for retirement.

India

  • 55% of employees surveyed have not assessed income needs in case of disability

  • 20% have taken any retirement planning steps

    Mexico

  • 62% of employees surveyed have not taken steps to determine their household’s life insurance needs

  • 19% have taken retirement planning steps

    Australia

  • 58% have not taken steps determine their household’s life insurance needs

  • 43% have taken retirement planning steps

    U.K.

  • 22% of employees surveyed have not taken steps to determine their household’s life insurance needs

  • 70% have taken steps to determine their needs for retirement income

Overview


The employee benefits advantage leveraging a global perspective5 l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

#1

#2

#3

Enough money to live on

INDIA

Job security

Health insurance

Paying bills during sudden income loss

MEXICO

Job security

Health insurance

Enough money to live on

Paying bills during sudden income loss

Job security

AUSTRALIA

UNITED KINGDOM

Enough money to live on

More time to spend with family

Job security

Paying bills during sudden income loss

UNITED STATES

Enough money to live on

Health insurance

The Employee Benefits Advantage: Leveraging a Global Perspective

Employees surveyed in these countries cite having enough money to live on and paying bills after a sudden income loss among their top financial concerns. For employees surveyed in the U.S., India and Mexico, health insurance is also among the top three financial concerns.


The employee benefits advantage leveraging a global perspective6 l.jpg

MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS OFFERING BENEFITS

#1

#2

#3

Controlling health and welfare benefits costs; increasing employee productivity

Helping employees make better financial decisions

Addressing more of employees’ different needs

INDIA

Increasing employee productivity

Increasing employee job satisfaction

Controlling health and welfare benefit costs

MEXICO

Increasing employee job satisfaction

Increasing employee productivity

AUSTRALIA

Retaining employees

UNITED KINGDOM

Attracting employees

Increasing employee job satisfaction

Retaining employees

UNITED STATES

Increasing employee productivity

Controlling costs

Retaining employees

The Employee Benefits Advantage: Leveraging a Global Perspective

Employers have an opportunity to find better ways of attracting and retaining good workers in a tight labor market. In the highly developed markets of the U.K. and Australia, “retaining employees” is named most frequently by employers as a benefits objective.

Overview


The employee benefits advantage leveraging a global perspective7 l.jpg

The Employee Benefits Advantage: Leveraging a Global Perspective

A set of common challenges faces employers in the countries surveyed, including:

  • Recruiting and retaining the best employees

  • Increasing productivity of employees

  • Managing the costs of benefits

  • Employees’ need for financial planning

  • Employees’ need for financial protection

  • The diminishing role of the state in health and social welfare programs

Overview


The employee benefits advantage leveraging a global perspective8 l.jpg

The Employee Benefits Advantage: Leveraging a Global Perspective

Solutions to these challenges may be found by leveraging a more global perspective and applying it to each country’s unique set of circumstances.

  • Address global trends and best practices

  • Country-specific data and analysis will demonstrate the types of local distinctions

  • Domestic companies can gain a more global perspective

Overview


India profile l.jpg

MARKET PROFILE

  • 3rd largest global economy3

  • GDP over $4.2 trillion4

  • Annual national income per capita: $8205

  • Rapidly growing economy, but poverty is pervasive6

  • Heavily agricultural (18% of GDP), but rapidly industrializing7

  • Working age population (ages 15-64) expected to jump from 704 million in 2005 to 1.0 billion in 20308

  • Median age: 23.8 years9

  • Life expectancy at birth: 63.510

India – Profile


India profile10 l.jpg

  • Retirement benefits are dominated by a government-mandated employer benefit called the Gratuity, by which every employee, upon leaving his or her employer after more than five years of service, collects 15 days of salary for each year of service.11

  • Workers may also save for retirement with a tax-favored vehicle called a Public Provident Fund, to which some employers also contribute.

  • The life insurance market is dominated by the government-owned Life Insurance Corporation of India (LIC), but private insurers are entering the Indian market.

  • A new regulatory body, the Pension Fund Regulatory and Development Authority, is expected to pave the way for more modern financial products.

BENEFITS AT A GLANCE

India – Profile


India employer perspective l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

INDIA: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEFITS

CONTROLLING HEALTH AND WELFARE BENEFIT COSTS

96%

INCREASING EMPLOYEE PRODUCTIVITY

96%

HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS

90%

ADDRESSING DIFFERENT ENEEDS OF EMPLOYEES

89%

INCREASING EMPLOYEE JOB SATISFACTION

88%

REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS

88%

ATTRACTING EMPLOYEES

87%

RETAINING EMPLOYEES

84%

Percentages have been rounded to the nearest whole number

India – Employer Perspective

Indian employers surveyed place controlling costs and increasing employee productivity as more important benefits objectives than attracting and retaining talented workers which is hardly a surprising finding in a country with a huge labor surplus and an expanding population.

Overview


India employee perspective l.jpg

India – Employee Perspective

Employees say that despite their need for retirement products and insurance, such benefits are not a major factor in their employment decisions. However any current ambivalence about employer benefits may be more attributable to a lack of employee education about the value of various benefits products than to a lack of need.

  • Nearly half (48%) of Indian employees surveyed whose employers do not offer benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost.

  • 51% of Indian employees currently lacking employer-provided benefits say they would be interested in purchasing term life insurance through their employer, even if they had to pay 100% of the cost.


India employee perspective13 l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

INDIA: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY

APPROPRIATE HEALTH INSURANCE

82%

81%

JOB SECURITY

80%

ENOUGH MONEY TO LIVE ON

ENOUGH MONEY FOR CHILDREN’S EDUCATION

79%

ENOUGH MONEY TO PAY BILLS DURING SUDDEN INCOME LOSS

79%

RESOURCES AND TIME TO CARE FOR AGING PARENTS OR RELATIVES

79%

BEING ABLE TO AFFORD QUALITY CHILD CARE

76%

ENOUGH MONEY TO BUY A HOME

73%

MORE TIME TO SPEND WITH FAMILY

73%

ENOUGH MONEY SO ONE PARENT CAN STAY HOME WITH CHILDREN

71%

Percentages have been rounded to the nearest whole number

India – Employee Perspective

When it comes to worries about retirement issues, a top financial concern among Indian workers surveyed is having enough money to take care of elderly parent or in-laws.

Overview

India

Australia

U.K.

Study

Methodology


India conclusions l.jpg

Indian employers regard controlling costs and increasing employee productivity as more important benefits objectives than attracting and retaining talented workers. Despite the country’s labor surplus, benefits are seen by employers in certain service-sector industries – or in areas in which multinational outsourcing business has intensified demand for labor—as a way to satisfy highly skilled without driving up wages:

Benefits Strategies for Tomorrow, Today

  • Companies offering health and life insurance provide two financial solutions that are in high demand.

  • Retirement planning products can provide employers with a long-term strategic option for meeting benefits goals.

  • Employers can work with providers of financial products to educate employees on how benefits can improve their financial security and quality-of-life.

  • Offering voluntary benefits is a way to increase the value of benefits offerings without increasing costs.

India - Conclusions


Mexico profile l.jpg

MARKET PROFILE

  • 12rd largest global economy21

  • GDP of $1.2 trillion22

  • Annual national income per capita: $7,87023

  • Rapidly growing economy, the “informal” economy has a sizeable presence

  • Mix of modern and outmoded industries; GDP: 70% services, 26% industry, 4% agriculture24

  • Working age population (ages 15-64) expected to jump from 66.1 million in 2005 to 86.4 billion in 203025

  • Median age: 25.6 years26

  • Life expectancy at birth: 75.4 years27

Mexico - Profile


Mexico profile16 l.jpg

  • A mandatory retirement savings system is paid for by employers, at 2% of wages, and managed in individual investment accounts by registered organizations known as AFORES.28

  • To help restore its public employee pension system to solvency, Congress voted to raise, by 2028, the retirement age for civil servants to an average of 59 years from 49.5 years and workers’ pension contributions to 6.125% from 3.5% by 2012—echoing reforms of private-sector pensions approved a decade ago.29

  • Mexico has a decentralized national health system, but employees who can afford private care tend to use it and buy insurance for it.30

BENEFITS AT A GLANCE

Mexico - Profile


Mexico employer perspective l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

MEXICO: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEEFITS

INCREASING EMPLOYEE PRODUCTIVITY

99%

INCREASING EMPLOYEE JOB SATISFACTION

91%

CONTROLLING HEALTH AND WELFARE BENEFITS COSTS

85%

ATTRACTING EMPLOYEES

83%

REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS

83%

ADDRESSING DIVERSE NEEDS OF EMPLOYEES

79%

HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS

75%

70%

RETAINING EMPLOYEES

HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS

70%

Percentages have been rounded to the nearest whole number

Mexico – Employer Perspective

Mexican employers view benefits plans more as tools for increasing employee productivity and job satisfaction than for attracting and retaining workers.

82% of Mexican employers say they are having difficulty finding suitable talent to fill jobs despite the abundance of general labor.34


Mexico employee perspective l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

MEXICO: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY

JOB SECURITY

79%

ENOUGH MONEY TO PAY BILLS DURING A SUDDEN INCOME LOSS

77%

APPROPRIATE HEALTH INSURANCE

75%

ENOUGH MONEY FOR CHILDREN’S EDUCATION

74%

72%

ENOUGH MONEY TO LIVE ON

MORE TIME TO SPEND WITH FAMILY

71%

ENOUGH MONEY TO BUY A HOME

69%

ENOUGH MONEY SO ONE PARENT CAN STAY HOME WITH CHILDREN

65%

RESOURCES AND TIME TO CARE FOR AGING PARENTS OR RELATIVES

61%

BEING ABLE TO AFFORD QUALITY CHILD CARE

52%

Percentages have been rounded to the nearest whole number

Mexico – Employee Perspective

The top three concerns of Mexican employees surveyed about financial security are job security, having enough money to pay bills during sudden income loss and having appropriate health insurance


Mexico conclusions l.jpg

Mexico has long opened its borders to multinational investment, and is one of the leading nations in facilitating trade agreements worldwide. But these developments, while boosting domestic economic growth at an enviable rate, can reshape the workplace environment. Mexican employees increasingly exposed to multinational influences will doubtless be drawn into the very human game of drawing comparisons. And in such an increasingly competitive landscape, Mexican employers looking to maintain top-quality workforces will increasingly feel compelled to reassess their own benefits practices:

Benefits Strategies for Tomorrow, Today

  • Offer a greater range of benefits such as health insurance and an employer sponsored savings fund than is standard practice.

  • Educating employees on the importance of financial planning, insurance and retirement savings can deliver significant benefits to both companies and workers for a minimal investment on the part of Mexican employers.

  • Voluntary benefits represent a valuable and cost-effective tool for employers.

Mexico - Conclusions


Australia profile l.jpg

MARKET PROFILE

  • 16th largest global economy37

  • GDP of $681 billion38

  • Annual national income per capita: $35,99039

  • Developed economy, capitalist system

  • Dominated by services sector (70% of GDP)40

  • Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in 203041

  • Median age 36.7 years42

  • Life expectancy at birth: 80.6 years43

Australia – Profile

Overview

India

U.K.

Study

Methodology


Australia profile21 l.jpg

  • Superannuation is a government-regulated, mandatory retirement savings program for all Australian workers; 9% of employee salary is contributed annually by employers; additional contributions are voluntary.44

  • All superannuation funds have an investment component; many also have, on either a voluntary or mandatory basis, an insurance component: term life, disability and income protection.45

  • Employees may purchase additional insurance benefits if offered, and costs are deducted from their investment account.46

  • Government covers all Australians, but private health insurance is common.47

BENEFITS AT A GLANCE

Australia – Profile


Australia employer perspective l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS

89%

RETAINING EMPLOYEES

INCREASING EMPLOYEE PRODUCTIVITY

87%

INCREASING EMPLOYEE JOB SATISFACTION

82%

ADDRESSING DIVERSE NEEDS OF EMPLOYEES

71%

HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS

68%

ATTRACTING EMPLOYEES

66%

HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS

65%

REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS

64%

Percentages have been rounded to nearest whole number.

Australia – Employer Perspective

Australian employers are feeling pressure to attract and retain talented workers.

In 2007, 61% of Australian employers surveyed experienced difficulty in finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41%53


Australia employee perspective l.jpg

AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT

49%

OUTLIVING RETIREMENT MONEY

BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS

44%

HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY IN RETIREMENT YEARS

43%

PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG-TERM CARE NEEDS

39%

PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS

38%

HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY PARENTS OR IN-LAWS

29%

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

Percentages have been rounded to nearest whole number.

Australia – Employee Perspective

41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given their ambitions plans for retirement and long life expectancy, most Australians are worried about having enough money to afford it.

43% understand retirement needs

42% planned for retirement

42% determined life insurance needs

35% determined income protection needs


Australia conclusions l.jpg

Australia’s superannuation funds have succeeded in providing workers with fundamental coverage for retirement and family protection in case of disablement, but this success appears to have bred a degree of complacency among workers when it comes to savings and insurance. However, the need for additional financial advice and education about their value opens a door for growth in employer-provided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasing look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base:

Benefits Strategies for Tomorrow, Today

  • In creating benefits plans, employers should first focus on educating employees about financial risks and appropriate coverage.

  • Financial planning services will likely prove appealing to the large share of Australian employees that are worried about paying for retirement but have done little to prepare.

  • Employers may find good results in constructing benefits packages that provide a high degree of personalization, with offerings that span insurance, investments and work/life options.

Australia - Conclusions

Study

Methodology


United kingdom profile l.jpg

MARKET PROFILE

  • 6th largest global economy57

  • GDP of $2.1 trillion58

  • Annual national income per capita: $40,18059

  • Developed, wealthy nation

  • Dominated by services sector (73% of GDP)60

  • Working age population (ages 15-64) expected to grow from 39.7 million in 2005 to 40.7 million in 203061

  • Median age 38.9 years62

  • Life expectancy at birth: 78.9 years63

United Kingdom - Profile

India

Australia


United kingdom profile26 l.jpg

BENEFITS AT A GLANCE

United Kingdom - Profile

  • The National Health Service provides publicly funded health care. However, private health insurance is common.64

  • The government provides the Basic State Pension, and provides for tax incentives for workers to fund their own personal pensions.65

  • The insurance and financial products markets are highly developed and competitive.66

Overview

India

Australia


United kingdom employer perspective l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

U.K.: MOST IMPORTANT BENEFITS OBJECTIVES OF EMPLOYERS THAT OFFER BENEFITS

83%

RETAINING EMPLOYEESS

ATTRACTING EMPLOYERES

78%

INCREASING EMPLOYEE JOB SATISFACTION

75%

INCREASING EMPLOYEE PRODUCTIVITY

71%

CONTROLLING HEALTH AND WELFARE BENEFIT COSTS

54%

United Kingdom – Employer Perspective

Most U.K. employers offers some benefits, which companies see primarily as a means of retaining and attracting employees.

Overview

India

U.K.

Percentages have been rounded to the nearest whole number.

Study

Methodology


United kingdom employer perspective28 l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

U.K.: BENEFITS OFFERED BY EMPLOYERS THAT OFFER BENEFITS

94%

PENSIONS

PRIVATE MEDICAL INSURANCE (PMI)

82%

LIFE ASSURANCE

66%

LONG-TERM DISABILITY OR PERMANENT HEALTH

43%

31%

CRITICAL ILLNESS INSURANCE

30%

TRAVEL INSURANCE

AUTO INSURANCE

27%

Percentages have been rounded to the nearest whole number.

United Kingdom – Employer Perspective

The majority of U.K. companies offer their employees pensions and private medical and life insurance however few employers have sought to differentiate themselves by expandingbenefits beyond this minimum.

Overview

India

U.K.

Study

Methodology


United kingdom employee perspective l.jpg

United Kingdom – Employee Perspective

For a group that has been relatively pro-active in assessing and planning for their financial needs, U.K. employees surveyed seem less than fully prepared in many other health-related issues.

40% of U.K. employees surveyed are extremely concerned with having more time to spend with families.

Behind job security and having enough money to live on.

  • 45% of U.K. employees have critical illness insurance.

  • 35% have long-term disability, or permanent health insurance.

  • 26% have dental insurance.

  • 11% have long-term care insurance.


United kingdom employee perspective30 l.jpg

TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES

U.K.: WHERE EMPLOYEES OBTAINED DIFFERENT FINANCIAL PRODUCTS

48%

PENSION

22%

12%

10%

CRITICAL ILLNESS

34%

1%

18%

51%

LIFE ASSURANCE

13%

11%

PERSONAL ACCIDENT COVERAGE

32%

3%

28%

PRIVATE MEDICAL INSURANCE (PMI)

14%

1%

Workplace

Outside Workplace

Both

United Kingdom – Employee Perspective

Among those who do own these products, most purchased them outside the workplace.

Overview

India

Australia

U.K.


United kingdom conclusions l.jpg

Benefits Strategies for Tomorrow, Today

United Kingdom - Conclusions

U.K. companies recognize the potential value of benefits programs in attracting and retaining workers—a task that looks to become increasingly challenging due to demographic changes occurring the workforce:

Overview

  • Consider financial education programs to assist employees in making the many important decisions facing workers forced to shoulder more responsibility for their own financial security.

  • Employers can increase the impact of their benefits plans by offering programs that provide employees with better work/life balance.

  • When expanding benefits plans, start with insurance.

India

Australia

U.K.

Study

Methodology


Slide32 l.jpg

Contact your MetLife representative for more information

Indiawww.metlife.co.in

Mexicowww.metlife.com.mx

Australiawww.metlife.com.au

United Kingdomwww.metlife.co.uk

United Stateswww.whymetlife.com/international5


Study methodology l.jpg

Study Methodology

The MetLife Study of International Employee Benefits Trends was conducted between November 2006 and March 2007 by GfK Custom Research, one of the top global market research consultants. Results were obtained through face to face, telephone and online interviews. The targeted sample of each country was designed to appropriately represent the full-time employee population base. Totals do not always equal 100% due to rounding.

Overview


Study methodology34 l.jpg

Study Methodology

Overview


  • Login